Washington, D.C. -- The Commodity Futures Trading
Commission (CFTC) approved on February 13, 2004, a proposal by
the Chicago Mercantile Exchange (CME) to increase the maximum
daily price limits for its live cattle and feeder cattle futures
contracts. The CME’s proposal, which was submitted for CFTC
approval on November 24, 2003, will increase the daily price
limits to 3 cents per pound from 1.5 cents per pound. The CME
proposal will also eliminate the futures contracts’
existing price limit expansion procedures that allow price limits
to be expanded up to 5 cents per lb. under specified conditions.

The CFTC’s approval of the proposal was
based on the conclusion of its staff that the proposal does not
violate the Commodity Exchange Act. In the course of its review,
the CFTC considered its long-standing policy that price limits
should be set by exchanges at levels that will not impair the
ability of the futures market’s prices to reflect movements
in cash prices for the underlying commodities. The CFTC also
considered the views of persons who submitted letters commenting
on the proposal in response to CFTC requests for public comment
posted on the CFTC’s website and in the Federal
Register.